61.A change in the amount of sales can be due to either a change in the units sold or a change in price or both.
a.True
b.False
62.Contribution margin reporting and analysis is appropriate only for manufacturing firms,
not
for service firms.
a.True
b.False
63.Service firms can only have one activity base for analyzing changes in costs.
a.True
b.False
64.In a service firm, it may be necessary to have several activity bases to properly match the change in costs with thechanges in various activities.
a.True
b.False
65.Managers in service firms do
notfind contribution margin analysis reports useful because their firms do not sellinventory.
a.True
b.False
66.What term is commonly used to describe the concept whereby the cost of manufactured products is composed ofdirect materials cost, direct labor cost, and all factory overhead cost?
a.Standard costing
b.Variable costing
c.Absorption costing
d.Marginal costing
67.What term is commonly used to describe the concept whereby the cost of manufactured products is composed ofdirect materials cost, direct labor cost, and variable factory overhead cost?
a.Absorption costing
b.Differential costing
c.Standard costing
d.Variable costing
68.Another name for variable costing is:
a.indirect costing
b.process costing
c.direct costing
d.differential costing
69.Under absorption costing, which of the following costs would
notbe included in finished goods inventory?
a.direct labor cost
b.direct materials cost
c.variable and fixed factory overhead cost
d.variable and fixed selling and administrative expenses
70.Under absorption costing, which of the following costs would
notbe included in finished goods inventory?
a.hourly wages of assembly worker
b.straight-line depreciation on factory equipment
c.overtime wages paid to factory workers
d.the salaries for salespeople